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Analysts’ Recommendations for Mylan in September 2017

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Dec. 4 2020, Updated 10:53 a.m. ET

Financial performance in 2Q17

In 2Q17, Mylan reported revenues close to $3.0 billion, which is a YoY (year-over-year) rise of around 16.0%. That was mainly driven by increased sales in Europe and the Rest of World markets, which currently account for half of Mylan’s total revenues.

The company also reported adjusted net earnings of $590.0 million in 2Q17, which is 5.0% lower on a YoY basis. That was mainly due to rising competition as well as the launch of the authorized generic version of the EpiPen auto-injector.

Mylan expects a delay in new product launches in 2017 due to the ongoing FDA (U.S. Food & Drug Administration) reorganization of processes and priorities. The company has postponed the product launches of generic Copaxone and generic Advair to 2018.

Mylan witnessed a price erosion in the mid-single digits for its generics business in 2Q17. While the company expects its overall price erosion to stay at mid-single digit levels for the rest of 2017, Mylan has projected a high single-digit price erosion for its North American generics business.

If factors significantly affect the company’s profitability in the remaining quarters of 2017, it may have an unfavorable impact on the share prices of Mylan as well as those of the iShares Nasdaq Biotechnology (IBB). Mylan makes up about 2.9% of IBB’s total portfolio holdings.

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Analysts’ recommendations for Mylan and its peers

Of the 21 analysts covering Mylan in September 2017, four have rated the stock a “strong buy,” ten have rated it a “buy,” and seven have rated it a “hold.”

Of the 26 analysts covering Regeneron Pharmaceuticals (REGN) in September 2017, ~50.0% have rated the company a “buy.” Approximately 80.0% of the 25 analysts covering Vertex Pharmaceuticals (VRTX) gave it a “buy” recommendation, while 41.0% of the 27 analysts tracking Sanofi (SNY) rated it a “buy.”

In the next part of this series, we’ll look at Mylan’s revenue growth prospects in more detail.

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